Horrible article. There is no evidence presented here. Basically the author argues no scenarios of repaying debt are plausible, so Japan will never do that and just live with the debt forever in equilibrium.
It's very naive to believe low interest rates can continue indefinitely. When standing on the precipice, all it takes is a breeze once to push you over the edge. Who would want to live this way?
The last decade has been a period of economic expansion. All it will take is one recession for more debt to pile on as social spending increases and tax revenues drop. Repeat this a few times and the debt load will become totally impossible to carry. If maintaining an equilibrium is so easy (which is an absolutely ridiculous idea) then why not maintain it with no net debt? Or with a surplus of assets that generate a return? Countries saddled in debt have a stone around their necks limiting their choices and best paths, and it is always easy to generate debt but never repay it. That asymmetry proves this is not a stable status quo.
This clown needs to read Nicolas Taleb. You can be right a hundred times picking up pennies in front of a steam roller...
Horrible article. There is no evidence presented here. Basically the author argues no scenarios of repaying debt are plausible, so Japan will never do that and just live with the debt forever in equilibrium.
It's very naive to believe low interest rates can continue indefinitely. When standing on the precipice, all it takes is a breeze _once_ to push you over the edge. Who would want to live this way?
The last decade has been a period of economic expansion. All it will take is one recession for more debt to pile on as social spending increases and tax revenues drop. Repeat this a few times and the debt load will become totally impossible to carry. If maintaining an equilibrium is so easy (which is an absolutely ridiculous idea) then why not maintain it with no net debt? Or with a surplus of assets that generate a return? Countries saddled in debt have a stone around their necks limiting their choices and best paths, and it is always easy to generate debt but never repay it. That asymmetry proves this is not a stable status quo.
This clown needs to read Nicolas Taleb. You can be right a hundred times picking up pennies in front of a steam roller...
Horrible article. There is no evidence presented here. Basically the author argues no scenarios of repaying debt are plausible, so Japan will never do that and just live with the debt forever in equilibrium.
It's very naive to believe low interest rates can continue indefinitely. When standing on the precipice, all it takes is a breeze once to push you over the edge. Who would want to live this way?
The last decade has been a period of economic expansion. All it will take is one recession for more debt to pile on as social spending increases and tax revenues drop. Repeat this a few times and the debt load will become totally impossible to carry. If maintaining an equilibrium is so easy (which is an absolutely ridiculous idea) then why not maintain it with no net debt? Or with a surplus of assets that generate a return? Countries saddled in debt have a stone around their necks limiting their choices and best paths, and it is always easy to generate debt but never repay it. That asymmetry proves this is not a stable status quo.
This clown needs to read Nicolas Taleb. You can be right a hundred times picking up pennies in front of a steam roller...